Forex Today: Caution amid Omicron uncertainty, looming central banks' decisions

What you need to know on Friday, December 10:

The market’s mood remained sour, amid Omicron uncertainty and as top central banks’ decisions loom.

According to Reuters and citing sources familiar with the matter, the European Central Bank Governing Council members are converging on a debate over a limited and temporary increase of Asset Purchases Programme (APP) in the December meeting. The ECB and the US Federal Reserve will announce their decisions on monetary policy next week. The Fed is seen speeding up tapering, moving in the opposite direction from the ECB. EUR/USD trimmed its recent gains and settled in the 1.1280 price zone.

The GBP/USD pair hovers around 1.3200, as odds for a rate hike in the UK had been pushed back amid the uncertainty caused by the coronavirus Omicron variant and the resulting decision of applying Plan B in the UK.

Not only the UK is announcing tighter coronavirus measures, unnerving market participants. Most European and American indexes closed in the red, weighing on commodity-linked currencies, which pulled back from their weekly highs vs the greenback. USD/CAD trades around 1.12710, while AUD/USD quotes at around 0.7150.

The USD/JPY is marginally lower in the 113.40 region, as government bond yields ticked lower.

Gold eased despite the worsening mood, now trading at around $1,776 a troy ounce. Crude oil prices also head lower, with WTI at $70.50 a barrel.

Shiba Inu buyers disappear as SHIB falls towards $0.00003